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NEA on Social Security Privatization: Opposed

NEA strongly opposes any privatization of Social Security.

  • Social Security is the cornerstone of the social safety net for America's retired workers.

  • The retirement plans that cover public education employees are designed to provide adequate income protection for retired employees, and where public employees participate in the Social Security system, benefit schedules are meant to supplement expected Social Security benefits.

  • Traditional public pension plans and Social Security are under increasing attack.

  • Privatization carries great risk and will jeopardize the secure retirement of many Americans.

  • Proposals already drafted would cut Social Security's guaranteed benefits even for people who decide not to set up private accounts.

  • Risky private accounts won't make up for the loss of benefits for millions of Americans.

  • Privatization will drain money available to pay current retirees.  The cost to replace these funds could reach $1 trillion over the next decade.

  • According to the nonpartisan Congressional Budget Office, the Social Security program can continue to pay 100 percent of guaranteed benefits until 2052.  If small changes are needed in the coming decades, there is time to make minor changes to guarantee complete solvency into the indefinite future.

  • The push to privatize Social Security is a risky scheme for America, but a sure bet for the financial services industry.  Financial firms stand to gain billions -- probably hundreds of billions of dollars -- in fees from private accounts.

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